Dubai Lagoon on Hold! Schon Properties Delaying with no reasons

[georgihh]

Originally Posted by daflanger

They have PDC Cheques from us and they refuse to return them. They also refused to stop depositing the cheques even though there is no construction.

For other investors who are not paying they are sending them warning letters from their lawyers.

We have asked for help from everywhere but no one is helping. I am guessing the only thing left to do is go to the Press and Media

Ok is so simple they need your cash to forget about the people not paying on time in a very simple manner
If you keep on paying and do everything properly you will get something at the end
So don’t give up

[Roshan]

Originally Posted by daflanger

They have PDC Cheques from us and they refuse to return them. They also refused to stop depositing the cheques even though there is no construction.

For other investors who are not paying they are sending them warning letters from their lawyers.

We have asked for help from everywhere but no one is helping. I am guessing the only thing left to do is go to the Press and Media

Whatever you do, do not default on the cheques as that becomes a violation. Sadly this part of the world there are no tough rules in place although there are talks of hunting down developers who violate.

Whe I heard of the new rules, I was so impressed and started crossing swords with my developers. In the end I realized it's better to be on the side of the developer and make peace with him. By using soft words I managed to defer my payments.

Call for a meeting with Schon and go as a group. They have to give some explanation. I don't think they will call of the project. Delay is what it will be. My two projects are delayed for well over a year. I have no choice but to wait.

Regards

Roshan

[daflanger]

Originally Posted by Roshan

Whatever you do, do not default on the cheques as that becomes a violation. Sadly this part of the world there are no tough rules in place although there are talks of hunting down developers who violate.

Whe I heard of the new rules, I was so impressed and started crossing swords with my developers. In the end I realized it's better to be on the side of the developer and make peace with him. By using soft words I managed to defer my payments.

Call for a meeting with Schon and go as a group. They have to give some explanation. I don't think they will call of the project. Delay is what it will be. My two projects are delayed for well over a year. I have no choice but to wait.

Regards

Roshan

Schon are shrugging us off every time we try to meet with management. They formed a Customer service unit that has the same answers everytime we ask them what is going on:

" In 2 weeks everything will be on track "

We have been receiving this answer since May 2007!!!! So now we are going to meet with Schon again... but through our lawyers.

[iced]

Everything that Deflanger has said so far is accurate and correct. I too have bought in Dubai lagoon. Yes i do expect delays of projects being delayed even for a couple of years. However the problem with this developer is that they are not being fair or even honest in their communications.

I think Roshan wrote that in another case the developer changed the payment plan for delays but this developer is not willing to do that. There is real concern about the project being completed. What is really upsetting is that the developer is launching new projects without even completing its first project.

I think that for at least this year and the first part of next year UAE inflation will be high because of the increase in the money supply (according to some economists this leads to inflation). This means higher costs and this increases the chances of off plan project not being profitable and thus stopped. This possiblity maybe a reason why prices of completed projects are rising.

As an investor of Dubai Lagoon i am fearful of the possibility that this project will not be completed. Construction started at least a year ago and there has been minimal progress. There are many other disgruntled investors.

The other danger of course is that in the current economic climate other delayed projects will be abadoned especially with smaller developers. I do believe that what happens with dubai lagoon project may set a precedent for the future.

Sorry to sound so negative. I have invested in RAK and other projects in dubai. Some have been delayed by over 18 months but at least there has been communication about the delays (eg no electricity) and construction progress.

Part of the reason for this post is to inform others of the problems involved specifically with DUBAI LAGOON.

[daflanger]

A Group of investors have decided to meet on Saturday, 26th of July @ 7 pm at Mall of the Emirates - Costa Cafe to discuss officially employing a law firm to handle our situation.

We will no longer contact Schon directly. The law firm will handle our situation. If there are any Dubai Lagoon Investors out there, please try to make it to the meeting. We will also keep you posted on what happens in the meeting

[daflanger]

The contractor has completely pulled out of the project and there is as of today no contractor!!!

On another note, a group of investors have met and you will soon witness a hype of media coverage on our issue! No more Mr. Nice Guy! Schon will have to answer to the mess they have put us through

[bapu]

Just to give you all an update:

Dubai Lagoons has not been cancelled

The developers were forced into a corner and had to make the following statement with RERA....
Dubai: The Dubai Lagoons, a project that is running more than a year behind schedule, has not been cancelled as rumoured, the Dubai Real Estate Regulatory Agency (Rera) assured investors on Tuesday.

Rera yesterday issued a statement reassuring investors against rumours that the project has been cancelled. The project, offered to investors on a 99-year leasehold, was bought by Schon PropertiesSchon Properties from its previous developers.

"The project, which was initiated before the launch of Rera, saw some delays. Rera, in its monitoring responsibility, had to respond to investors' complaints and safeguard their rights and interests," Marwan Bin Galita, Rera chief executive, said in a statement on Tuesday.

"Having been registered in the real estate developers' record, Schon PropertiesSchon Properties deposited the requisite amounts in its escrow accounts. Rera then had a list of all the investors of the Lagoons project," Bin Galita said.

Meeting

Rera had a meeting with the (60) investors who purchased apartments in the project. It could amicably unravel scores of disputes and shelter investors' interests over its year-long launch, Bin Galita said.

All investors are urged to report to Rera whatever violations they come across, particularly those related to escrow accounts No 8. Should they get involved in disputes or litigation vis-a-vis real estate development, investment and freehold, they are advised to approach the Property Court. They may also seek compensation and enforcement of obligations therein, Bin Galita said.

Rera spares no effort to create a scrupulous, stable, secure and safe real estate market here so that investors would have more confidence.

Giving a boost to investment ambiance and putting real estate transactions in a modern legislative framework up to Dubai international name and fame are further fruit.

"Rera is geared up to enhance Dubai achievements and siphon real estate breaches committed by few developers, who care for only their profits, disregard the Dubai second booming real estate development," Bin Galita said.

A plan is being laid down to better monitor the Lagoons' ongoing construction, he said

Those who have invested here please feel free to look at the new forum which has been created for this project and is 'controlled' by the investers!!

The link can be found here: dubailagoon(dot)proboards81(dot)com

[mcjidim]

Originally Posted by daflanger

Hi All,

If anyone is considering Dubai Lagoon as an investment... then think again! Alot of us unfortunate investors are having serious trouble with Schon Properties as the project has come to a complete stand still with no solution apparent in the near future. The sad part is Schon cannot offer any of us a delivery schedule and all they ask for is the payments???

We are forced to continue our payments against nothing!!! No delivery dates, no updates, no info... absolutely nothing!

The project if completed will not be ready before 2011 and yet we are being forced to continue with our payments!

Is anyone else stuck in this project?

Daf

I too invested in Dubai Lagoons and unfortunately i have already paid them 60% !!!!

I hope they dont cancel this project, and i was told my building will be among the first lots to be completed and the construction for that block has already started and they told me it will be handed over in 2008 end

[bapu]

mcjidim

The project is back on track.... I'm trying to find all the other investers in this project....

There is a dedicated forum setup for this project

[bapu]

Originally Posted by bapu

mcjidim

The project is back on track.... I'm trying to find all the other investers in this project....

There is a dedicated forum setup for this project

Schön has also confirmed that the agreement with the original contractors Powerline Gulf has been renegotiated to include the first two zones and construction is due resume in the coming weeks. The first zone is now set for completion within 13 months and the second zone is set for completion within 18 months as of July 28th. Negotiations with another leading contractor to handle the remaining zones are currently being finalised of which official appointments by Schön will be announced shortly.

Zone 1 = 8 Buildings

Zone 2 = 8 Buildings